Calculate the dupont identity for the past three years

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Assignment

1. Calculate the DuPont Identity (Equation) for the past three years using Venture Line(or equivalent) for:

Your chosen company

A close competitor

Industry averages

2. Answer the following questions:

A. Using chapter 5 of Crafting and Executing Strategy, which generic competitive strategy does your chosen company employ? Justify your answer.

The five strategies are:

Low-Cost Provider

Broad Differentiation

Focused Low-Cost Provider

Focused Differentiation

Best-Cost Provider

B. What does the DuPont Identity tell you about your chosen company's overall performance versus its competitor and industry benchmarks?

C. Using industry averages as a benchmark, what advice would you give your company in order to improve their ROE? What strategic moves could the company make to improve their competitive position?

(Feel free to use other financial ratios to augment your analysis).

Chapter 6 of Crafting & Executing Strategy contains the following categories of types of strategic moves the company can make to improve their competitive position such as:

Offensive- Strategic Option -Improve market position

Defensive Strategy - Protect market position and competitive Advantage

Scope of Operations - Should they alter range of products or services offered?

Merger and Acquisition - Acquire or merge with another company either horizontal or vertical

Outsource Strategy - Narrow scope of products/services

Strategic alliance or partnerships

Reference no: EM132274429

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